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Macon, Missouri, businessman sentenced on fraud charges involving energy generating machine

July 24, 2012

St. Louis, MO - David Grammer was sentenced to 78 months in prison involving his scheme to market an energy generating machine known as "Boydoplex." In addition to his prison sentence, he was ordered to pay restitution of $2,719,189. As part of his earlier guilty plea, Mr. Grammer agreed to the forfeiture to the government of all money and property derived from the illegal activity with the understanding that the funds received through the seizure of his assets would be provided to his victims as restitution.

According to court documents and the evidence presented during the sentencing hearing, prior to 2004, Grammer and an associate started a venture to develop, manufacture and market an electronic device which would generate energy. Grammer was to serve as the project engineer and the associate would be responsible for raising the capital needed to fund the venture which they named Boydoplex. His partner died in 2004 and his daughter assumed her father’s responsibilities.

As the device was fictitious, funds raised for its development were used by Grammer. Between March 2004 and April 2011, Grammer made statements in person and through electronic mail representing that the project was on the verge of sale for amounts ranging from $300,000,000 to $863,000,000. More than 84 individuals and businesses invested over $3.3 million towards the development of the device, and $2,719,819 was traced to Grammer’s bank accounts. Grammer made additional false statements that he and fictitious associates were developing prototypes and working models of Boydoplex in laboratories located in Evansville, Indiana and Hannibal, Missouri. In order to further the scheme, Grammer opened electronic mail accounts for the fictitious individuals and sent correspondence to his former partner’s daughter in their names. He also telephoned some investors pretending to be the fictitious individuals. When investors questioned the delays, Grammer told them that the laboratories had been destroyed by floods and other natural disasters.

DAVID GRAMMER, Macon, MO, pled guilty in April to two felony counts of mail fraud, and appeared today for sentencing before United States District Judge Jean C. Hamilton.

This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the Missouri Secretary of State Securities Division and the United States Trustee’s Office. Assistant United States Attorney Tracy Berry handled the case for the U.S. Attorney’s Office.

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